October
2004 Issue
 Impact
Of The Federal Election Result?
MJM’s
Strategic Alliance With Raine & Horne
Commercial
Kippara
Day
Featured
Story: Nissan’s Move To Homebush Is
Now Complete
Emerging
market trends: City Fringe Commercial Strata
Office Market
Impact
Of The Federal Election Result?
Well, who would have thought the Coalition
would be in power for a further three years
with an increased majority and the control
of the Senate? This is in spite of the results
of televised debates and numerous opinion
polls, which predicted a close finish.
The vast majority of our client base believe
the result is a positive and secure outcome
with only minor interest rate increases
expected over the next 12 to 18 months.
The Howard Government’s reputation
as a sound economic manager should give
the business community confidence in the
future and should result in strong employment
growth and improved business investment
activity.
The election was an excuse to put on hold
major business decisions, such as buying
or selling real estate. It could be argued
that had the Labor Party been elected, further
procrastination may have resulted.
With the upcoming US election and projected
interest rate increases major topics of
conversation the next six months should
be very interesting indeed.
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MJM’s
Strategic Alliance With Raine & Horne
Commercial
In order to accommodate increasing
demands from our client base MJM has set
up a joint venture with the Raine &
Horne Commercial real estate agency franchise.
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MJM
will now be able to offer traditional
agency and property management services
along with the existing advisory business
model, which has proved so popular
with our clients in the last 10 years.
If you have a property
to lease or sell OR you would like
to purchase or rent a commercial property
MJM now has direct access to the Raine
& Horne Commercial network, which
has 25 offices Australia wide. |
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Kippara
Day
We recently attended the annual conference
organised by the Australian Property Institute
where a number of interesting topics were
addressed by a wide range of speakers.
The Keynote Speaker was Bill Evans of Westpac
who outlined his major predictions for the
Australian economy in 2005. These included
a minimum increase of 0.25% in official
interest rates in December this year, an
extended period of flat residential property
values, a moderate slowdown in the residential
building sector, stable unemployment in
the low to mid 5% range and a lower Australian
dollar.
CB Richard Ellis & Urbis JHD analysed
the commercial property market in general
and addressed several areas of concern that
are worthy of comment.
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The
commercial office markets tend to
react to global economic activity
whilst domestic issues impact the
retail & industrial sectors more.
This explains why net absorption of
office space in the Sydney CBD is
set to remain low for the next 5 to
10 years.
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Other trends include the continued growth
in office employment (now over two thirds)
outside the CBD, which is seeing city fringe
locations such as Pyrmont and Ultimo, as
well as suburban areas like Homebush, Norwest
and South Sydney becoming more popular.
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Featured
Story: Nissan's Move To Homebush Is Now
Complete
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As can
be seen from the schedule of photographs
the new 6,000 sqmt Nissan office and
spare parts warehouse at Homebush
is now fully occupied and operating.
The specification and
fitout quality of the building is
first class with Nissan’s staff
and management very happy with the
new combined facility.
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Nissan’s Michael Cameron
commented that “The synergies
of the two businesses were working
well and the initial phases of the
relocation and occupation had gone
smoothly.”
The quality of the ancilliary amenities
in this complex such as security,
canteen, restaurant and parking
have been a godsend to the business.
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Another
major factor that has come to our
attention is the fact that MJM negotiated
a deal on our behalf with an incentive
package that couldn’t be repeated
today. “In hindsight our timing
was right and so was our decision
to appoint an experienced operator
like Michael to do the deal for us.”
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Nissan’s new landlord Macquarie Goodman
Industrial Trust commented that the estate
is now 80% leased with a blue chip tenancy
profile including Ateco Automotive, Nissan,
Optima, UPS Logistics, Fuji Xerox, Valley
Girl and Fujitsu.
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Emerging
market trends: City Fringe Commercial Strata
Office Market
Small business owners who do not
need to be in the heart of the CBD continue
to analyse the 'buy rather than lease' property
strategy. Demand for 'non traditional' strata
office space on the edge of the city has
never been stronger, with several projects
achieving excellent off the plan sales and
high rates per square metre.
Former industrial buildings are being converted
to trendy offices with creative and media
related users looking for a location close
to retail facilities and public transport
but not in the heart of the city.
Traditionally the city fringe was the poor
cousin of the CBD but landmark developments
such as Jones Bay Wharf, The Fusion at Ultimo,
Cooperage at Pyrmont, 35 Australia Street,
Camperdown and Australand’s conversion
of the old Broadway Picture Theatre have
set a new benchmark in terms of quality
and convenience.
If you have any questions regarding any
of these projects or the market in general
please do not hesitate to call.
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